MR No. 2014 – 031
30 September 2014
The Financial Markets Authority (FMA) has issued a warning about General Equity (previously named General Equity Building Society), a New Zealand registered building society. The warning recommends that the public exercises extreme caution when dealing with General Equity, the full warning is available here.
FMA considers that General Equity has engaged in misleading and deceptive conduct, including the way it has represented how it is regulated in New Zealand.
Although General Equity is registered as a building society, it does not carry on business as a deposit taker in NZ, and is not subject to Reserve Bank or trustee oversight. General Equity has not issued shares to the public. Most of General Equity’s business is conducted off-shore. The FMA is not aware that any New Zealanders have suffered a loss at this time. However, given General Equity’s past conduct, we consider that anyone dealing with General Equity should exercise extreme caution.
FMA has ordered General Equity to include the FMA warning prominently on the main page of any website operated by, or on behalf of, General Equity under section 49 Financial Markets Authority Act 2011 (a warning disclosure order).
The warning disclosure order can be found at Warning Disclosure Order under Section 49 of the Financial Markets Authority Act 2011.
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